Gold price breaks into multi-year high, as Brent price regains lost ground
Gold surges through historical resistance zone, bringing wider bullish outlook. Meanwhile, crude prices are showing signs of life after a rare decline in inventories.
Gold surges through crucial resistance zone
The prospect of a new round of easing from the Fed was enough to bring about a new five-year high for gold, bringing a bullish breakout that was three years in the making. This moves us into an area with precious little resistance, where further upside looks very likely. As such, a bullish view remains in play unless we break below $1333.
Brent crude starts to regain ground after fall in stocks
Yesterday’s decline in the US inventories figure was a rare undershoot of estimates, with the recent build-up in US stockpiles providing a narrative of overproduction and oversupply in the US. That decline provided us with a rebound to push the Brent price through the $62.22 resistance.
The next hurdle is at $63.53, where a break below that level would signal a likely wider bullish phase coming into play. Such a move could simply be a retracement of the sell-off from $69.34. Yet with this current base being created at the 61.8% Fibonacci retracement, bulls are likely to feel a cautious sense of optimism after recent developments.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets